DIGITAL MAGICS COMPANY PROFILE › wp-content › uploads › 2015 › 01 › ...Forrester Research;...
Transcript of DIGITAL MAGICS COMPANY PROFILE › wp-content › uploads › 2015 › 01 › ...Forrester Research;...
© Digital Magics 2014 - All rights reserved
DIGITAL MAGICS
COMPANY PROFILE
Milano, Small Cap Conference
November 20th 2014
The Italian leading venture incubator
The market: Europe
The market: Italy
Why to invest in Digital Magics
“Any su f f i c i ent ly advanced techno logy i s ind i s t ingu i shable f rom magic”
-Arthur C . C la rke -
© Digital Magics 2014 – Corporate Presentation
20/11/14
© Digital Magics 2014 – Corporate Presentation
W H AT W E D O : w e a r e c o m p a n y b u i l d e r s , p ro v i d i n g h i g h -
p o t e n t i a l s t a r t u p s w i t h e v e r y t h i n g t h e y n e e d t o s u c c e e d
On average, an initial capital of 300K, plus the financial support of our DMAN
DM-Lab: Full Support and mentorship to speed up growth and achieve an acceptable degree of operation and autonomy
Strategy
Profitable Exit TO START
TO GROW
TO SUCCEED
20/11/14
I N T R O D U C T I O N : T H E I T A L I A N L E A D I N G V E N T U R E I N C U B A T O R
T H E M A R K E T : E U R O P E
T H E E U RO P E A N C O N T E X T : M A I N V C T R E N D S : F I N A N C I N G
•Raised €2.3bln in 3Q2014, the highest quarterly investment since 3Q2001
(€2.7bln)
•Investment increase of 36% as compared to 3Q2013
Sources: DowJones Venture source, 3Q2014
Top 5 fundraisings 2014
© Digital Magics 2014 – Corporate Presentation 20/11/14
T H E M A R K E T : E U R O P E
T H E E U RO P E A N C O N T E X T : M A I N V C T R E N D S : E X I T S
•16 IPOs ( €447 mln) in 3Q 2014 as compared to 3 IPOs(€26 mln) raised in 3Q 2013
Source: DowJones Venture source, 3Q2014
© Digital Magics 2014 – Corporate Presentation 20/11/14
• In 2013, four EU major
funds set up angel structures
for early stage opportunities
• Governments support
innovation to boost
employment, particularly
among the young
• Typical VC actors (banks and financial
institutions) have scaled back due to
tougher regulation and capital
• requirements: CORPORATE
• VENTURING is rising
• In 2013, the value of European
investments in VC rose by 19% in the
previous year and the number of
investment rounds was up
by more than 5%
T H E M A R K E T : E U R O P E
T H E E U RO P E A N C O N T E X T : E N C O U R AG I N G T R E N D S
EUROPE IS
BACK
CORPORATES
ARE COMING
GOVERNMENTS
ARE
SUPPORTIVE
EARLY STAGE
UNDER THE
SPOTLIGHT
• More than a quarter (27%) of start-up
rounds by VC saw participation by an angel
or incubator in 2013 (six times more than
in 2007)
WHY DM MODEL IS BOOMING IN EUROPE
• After the rise of crowdfunding (€446mln
raised in 2011 and €735mln in 2012),UE is
willing to harmonize regulation in 2014
© Digital Magics 2014 – Corporate Presentation 20/11/14
Source: EY Global VC insights and trends report 2014
T H E M A R K E T : E U R O P E
T H E E U RO P E A N C O N T E X T : S O M E T H I N G I S M OV I N G …
EU Venture Capitalists are gathering their strengths to catch opportunities…
Oct 2014
Rocket Internet IPO
Market Cap: €7.2B
Nov 2014
Deutsche Telekom
launches its new venture
arm (€500M)
© Digital Magics 2014 – Corporate Presentation 20/11/14
20/11/14
T H E M A R K E T : I T A L Y
© Digital Magics 2014 – Corporate Presentation
T H E I TA L I A N M A R K E T
The Italian market of capital investments aimed at startups is still immature: Investments in
Venture Capital in Italy totaled less than 0,003% of the GDP in 2013, much lower than the
European average 0,024%, GER 0,026%, UK 00,29%
But something is changing… Source: Thomson Reuters Datastream (GDP) / EVCA
20/11/14
T H E M A R K E T : I T A L Y
© Digital Magics 2014 – Corporate Presentation
Innovative startups:
More than 2700 enrolled at the innovative startup register in the last 2 years
Startups’ funding:
Focus on micro-finance
Startups’ window-dressings:
Dozens of “business competitions”every year
INNOVATION IN ITALY
Source: Osservatori:Italia start up, The Italian Startup Ecosystem
Rise of Seed phase
Seed phase investors on their way to corner the
market, coherently with the European scenario
RECENT TRENDS: CHANGE IN INVESTMENT FOCUS
Source: Osservatori:Italia start up, The Italian Startup Ecosystem
T H E M A R K E T : I T A L Y
D E C R E T O S V I L U P P O : E X P L O I T I N G I T A L I A N L E G I S L A T I O N O N S T A R T U P S
20/11/14
INCOME TAX DEDUCTION OF 19% for direct and indirect investments
in innovative startups, up to €500k per year
Fast-track, simplified and free-of-charge
ACCESS for startups TO THE
FONDO CENTRALE DI
GARANZIA
SPECIAL LABOUR LAW
applicable to startups
Startups can REMUNERATE
their team members and providers of external services
with STOCK OPTIONS
© Digital Magics 2014 – Corporate Presentation
RECENT TRENDS: ITALIAN LEGISLATION
I T A L I A N P R I M E M I N I S T E R R E N Z I T O E U C O M M I S S I O N P R E S I D E N T J U N K E R :
L O O S E N E U B U D G E T R U L E S T O A L L O W I N V E S T M E N T S I N G R O W T H
16/10/14
T H E I TA L I A N I N T E R N E T M A R K E T
T H E M A R K E T : I T A L Y
© Digital Magics 2014 – Corporate Presentation
Sources: economist Intelligence Unit; Ovum; Gartner; euromonitor International;
Organisation for economic Co-operation and Development (OeCD); magnaglobal; CCB;
Italian National Institute of statistics (Istat); Politecnico di milano (Polimi); Confindustria;
Forrester Research; company reports; assinform; BCG analysis.
Economic value of internet on GDP (%) UK 8.3 SKOR 7.3 JAP 4.7 USA 4.7 D 3 CAN 3 F 2.9 ITA 2.1
Source: TEH-Ambrosetti study on OECD data
19/09/14
LUGANO SMALL & MID CAP INVESTOR DAY
V Edizione
Hotel Splendide Royal
19 settembre 2014
Digital Magics’ figures
Our “Magic” formula
DM’s strategic assets
Digital Magics’ Portfolio
Financial Insights
Business Plan 2014-2018
© Digital Magics 2014 – Corporate Presentation 20/11/14
W H Y T O I N V E S T I N D I G I T A L M A G I C S
5 0 S TA RT U P I N C U B AT E D - 6 E X I T S , O N LY 4 W R I T E - O F F S
2 5 E X P E R I E N C E D PA RT N E R S A N D P R O F E S S I O N A L S
M O R E T H A N 300 JOBS C R E AT E D
M O R E T H A N 1 0 0 0 P I T C H E S
E X A M I N E D E A C H Y E A R
ABOUT €15 MLN INVESTED
€5 C O M I N G F RO M EXITS
DIGITAL MAGICS’ FIGURES
4 0 AC T I V E S TA RT U P S I N I T S P O RT F O L I O
20/11/14 © Digital Magics 2014 – Corporate Presentation
AV E R AG E 31,56% IRR O N E X I T S
Business
model
K E Y S E L E C T I O N C R I T E R I A
D I G I T A L S E C T O R S C A L A B L E B U S I N E S S
M O D E L
S T R O N G A N D
C O H E S I V E T E A M
S T A R T U P
I N C U B A T I O N 3 6 0 ° S U P P O R T M A R K E T L A U N C H
A N D G R O W T H
Team
Financing
Execution
ANGEL
NETWORK
1
4
3
2 1 ° C L A S S M G M T T E A M W I T H O U T S T A N D I N G B A C K G R O U N D
A B O U T € 2 0 M L N F U N D I N G T H R O U G H P A R T N E R S H I P S W I T H :
C O M P A N Y B U I L D I N G
O U R « M AG I C » F O R M U L A
© Digital Magics 2014 – Corporate Presentation 20/11/14
W H Y T O I N V E S T I N D I G I T A L M A G I C S
D I G I TA L M AG I C S ’ T E A M
© Digital Magics 2014 – Corporate Presentation 20/11/14
W H Y T O I N V E S T I N D I G I T A L M A G I C S
Enrico Gasperini Founder, Chairman and CEO
Luca Giacometti Independent Board Member
Gabriele Ronchini Founder and Executive
Director
Alessandro Malacart Partner and co-CEO
Alberto Fioravanti Founder and Executive
Director
Gabriele Gresta Founder and Director
Layla Pavone Partner
Michele Novelli Partner
Edmondo Sparano Partner
Gennaro Tesone 56Cube Partner
Giandomenico Sica Partner, Network & Business
Development
Stefano Miari Partner, Fund raising
Antonello Carlucci Partner
We are purpose-built to deliver excellence : we are specialized in digital economy and have an hard-
working, committed team of seasoned veterans in the digital investment sector
Entrepreneurs, managers and
HNWI interested in digital
innovation and startups
Companies looking for open
innovation programs - RCS, Nice,
Uvet
Banca Sella, IntesaSanpaolo,
Tamburi Investment Partners,
Atlante Seed Fund et al
Private
Corporates
FI & Funds
W H Y T O I N V E S T I N D I G I T A L M A G I C S
D M ’ S S T R AT E G I C A S S E T S - T H E D M A N G E L N E T WO R K
The DMAN is a network
of more than 100 investors
interested in co-investing
alongside Digital Magics on
club-deal in order to
support the startups
20/11/14 © Digital Magics 2014 – Corporate Presentation
D M : L A T E S T N E W S
MAIN ACHIEVEMENTS FOR DM Angel Network:
easier equity placements to investors for our Startups
increased liquidity and easier exits
B R E A K I N G N E W S :
S T R AT E G I C PA RT N E R S H I P W I T H E P I C S I M
T H E D E A L W I L L E A S E F I N A N C I N G R E L AT I O N S H I P S W I T H
I N V E S TO R S
© Digital Magics 2014 – Corporate Presentation 20/11/14
W H Y T O I N V E S T I N D I G I T A L M A G I C S
D M ’ S S T R AT E G I C A S S E T S - T H E O P E N I N N OVAT I O N P RO G R A M
Supporting M&A
activities
Buying Digital Assets
DIGITALISATION PROCESS
Funding a Vertical
Incubator
Investing in Digital Startups
Creating digital
spinoffs
D I G I T A L M A G I C S A N D T H E I N D U S T R I A L P A R T N E R
C R E A T E A S H A R E D A G E N D A O N T H E V E R T I C A L
M A R K E T F O R :
The Open Innovation program has the aim of supporting corporations during their digitalization/innovation processes.
The program combines the expertise of industrial partners with the digital acceleration expertise of Digital Magics.
20/11/14 © Digital Magics 2014 – Corporate Presentation
D M ’s P O RT F O L I O B Y S E C TO R S O F O P E R AT I O N
DM’S
PORTFOLIO
(40 startups)
FINANCIAL TECH
(6 startups)
DIGITAL MEDIA
(14 startups)
E-COMMERCE
(4 startups)
DIGITAL ADVERTISING
(7 startups)
B2B TECH SERVICES
(5 startups)
TRAVEL TECH
(4 startups)
© Digital Magics 2014 – Corporate Presentation 20/11/14
D M : L A T E S T N E W S
Over €5.3M sale to the Norwegian TrustBuddy + 10.000.000 of its stock options
Capital gain will be about 300% of investment
An example of the value added by DM:
Less than a year of investment
4x growth
D M ’ S M O S T R E C E N T E X I T :
© Digital Magics 2014 – Corporate Presentation 20/11/14
D M ’s P O RT F O L I O B Y V E N T U R E S TAG E
28 S
E
E
D
6 Round
A
6 Market
© Digital Magics 2014 – Corporate Presentation 20/11//14
W H Y T O I N V E S T I N D I G I T A L M A G I C S
€ 0
€ 500.000
€ 1.000.000
€ 1.500.000
€ 2.000.000
€ 2.500.000
€ 3.000.000
€ 3.500.000
Book Value
Fair Value
D M ’ S P O RT F O L I O : B O O K VA L U E V S FA I R VA L U E
- S O U R C E : I N T E G R A E S I M , 1 9 / 0 5 / 2 0 1 4 -
€26,279,000
€9,334,200
20/11/14 © Digital Magics 2014 – Corporate Presentation
W H Y T O I N V E S T I N D I G I T A L M A G I C S
TO P P E R F O R M E R S
1st Italian online advertising network for major Italian premium publishers;
1st and only Italian network certified as Facebook advertising provider.
In 2012 received a € 2 million investment from VC house Principia SGR.
2013 Revenues: 4,5 M€
20/11/14
The leading Peer-to-Peer lending platform in Italy. A trademark
owned by Agata SpA, a company officially registered as financial broker.
Certified by Banca d’Italia in 2009, Prestiamoci aims to develop the lending
market among people (P2P) allowing investors to loan money to private
people as well as firms.
Mimesi operates in the field of media monitoring and press releases. It
is the first B2B service in Italy to provide a comprehensive
reputational analysis of traditional and digital media.
It annually processes more than 18 million articles using an innovative
proprietary software which processes the articles in a fully digital format.
© Digital Magics 2014 – Corporate Presentation
W H Y T O I N V E S T I N D I G I T A L M A G I C S
S T R AT E G I C P RO J E C T S
Premium Store is an innovative startup. Thanks to the exclusive
agreement signed with Consorzio Edicola Italiana – founded
by major Editors Caltagirone Editore, Gruppo 24 ORE,
Gruppo Editoriale L’Espresso, La Stampa, Mondadori and
RCS MediaGroup – Premium Store is now developing and will
manage EDICOLA ITALIANA: the online newsstand of the Italian
premium publishing industry.
20/11/14
The first “open innovation” project focused on incoming
travel in Italy. It will be developed by Digital Magics in partnership
with the industrial group of Uvet American Express and the support of
Confturismo.
Tripitaly.it will suggest on a day-to-day and step-by-step basis,
anything that could be available for an unforgettable holiday
in Italy.
© Digital Magics 2014 – Corporate Presentation
S H A R E H O L D I N G
( 1 4 / 1 1 / 2 0 1 4 )
S T O C K I N F O ( 1 3 / 1 1 / 2 0 1 4 )
TARGET PRICE: €9.1 (INTEGRAE SIM – 14/11/14)
MARKET CAP: €17.47 MLN
INVESTMENTS OVERVIEW Nov 2014 2013
New startups 9 11
# Active investments in portoflio 40 31
Of which innovative 20 10
Year to year investments (gross) €1.856 Mln €3.47 Mln
Historical Cumulated investments €15.176 Mln €13.32 Mln
NFP (last data: €(85,000) as of June 2014) €(2.64) Mln
© Digital Magics 2014 – Corporate Presentation 20/11/14
D M : F I N A N C I A L I N S I G H T S
47,07%
28,60%
24,33% MARKET
Enrico Gasperini
Alberto Fioravanti
F I N A N C I A L I N S I G H T S
Source:Borsa Italiana (Italian Stock Exchange) AIM Italia Market
INCOME
STATEMENT 1H 2014 1H 2013 % Change
Revenue €1.14 Mln €0.76 Mln + 50.4%
EBITDA €86,000
€45,000
+90.4%
EBITDA
Margin % 7.6% 5.9% +1.7%
Net
Income €(176,000) €(303,000) +42%
© Digital Magics 2014 – Corporate Presentation 20/11/14
D M : F I N A N C I A L I N S I G H T S
F I N A N C I A L I N S I G H T S – H A L F Y E A R LY R E P O RT
BALANCE
SHEET 1H 2014 31/12/2013 Change
Financial
Assets €11.67 Mln €10 Mln €1.67 Mln
Invested
Capital €13.54 Mln
€11.16 Mln
€2.38 Mln
NFP €(85,000) €(2.64) Mln €2.55 Mln
D M : F I N A N C I A L I N S I G H T S
AG G R E G AT E F U N D I N G - D e c 2 0 1 1 – N o v 2 0 1 4
Historical Cumulated
Investments* (in 000€)
20/11/14 © Digital Magics 2014 – Corporate Presentation
€ 4,702 Mln
€15,176 Mln
*Cumulated investments GROSS of Exits
B U S I N E S S P L A N 2 0 1 4 - 2 0 1 8 : C O N S O L I DAT I O N A S T H E I TA L I A N
L E A D E R I N S TA RT- U P I N C U B AT I O N
Exits for more than €20 Mln within 5 years, with
target dividends distribution of €7 Mln
(equal to 50% of the expected capital gain)
Reach 1000 investors in the DMAN and increase territorial coverage in
Italy
Invest about €4 Mln per year in 100 new digital
initiatives
Create 5 new Open Innovation Programs
every year
© Digital Magics 2014 – Corporate Presentation 20/11/14
20/11/14
C O N C L U S I O N S
Italy is currently one of the fastest growing digital markets
In a digital ecosystem still underdeveloped thousands of new
startups are springing up and will become the main agents of
this growth
Thanks to the high success rate of its portfolio, Digital
Magics is the principal hub for the development and for seed
investments’ opportunities in the digital sector
Investing in Digital Magics allows investors to enter into a
new diversified asset class with very high investment returns
through a specialized and trustworthy vehicle of specialists
© Digital Magics 2014 – Corporate Presentation
W H Y T O I N V E S T I N D I G I T A L M A G I C S
M i l a n o , 8 s e t t e m b r e 2 0 1 4
Grazie per l ’ attenzione . Thanks for your attention.
Milano, November 20th 2014